Capita plc (CPI.L) Tuesday announced that it is acquiring Vertex Mortgage Services Limited for 35 million pounds on a cash free, debt free basis, subject to approval by the Financial Conduct Authority.
Capita said the acquisition of Vertex MS further strengthens its growing position within the third party mortgage administration market. Capita already has a strong working relationship with Vertex MS that specialises in providing mortgage processing and administration software
solutions to major retailers and high street banks.
Vertex MS employs 340 people and had an annual turnover in the financial year 2015 of 22.9 million pounds with pro forma EBITA of 1.3 million pounds. The company is forecasting pro forma EBITA of 2.7 million pounds on turnover of 33.1 million pounds in its current financial year to March 31, 2016.
Due to synergies and growth expectations, Capita expects the acquisition to achieve target return on investment of 15 percent in 2017.
Separately, Capita announced that, further to the announcement by the CBI on Monday, Non-Executive Director Carolyn Fairbairn will be standing down from her position at Capita prior to taking up her new appointment as Director General of the CBI.
A further announcement will be made in due course on the transfer of her board committee appointments, including the Chair of the Remuneration Committee.
In London, Capita shares were trading at 1,241 pence, down 0.48 percent.
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